What Are Prime Costs? What Are Conversion Costs

question 194

Essay

What are prime costs? What are conversion costs?

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Definitions:

CVP Analysis

Short for Cost-Volume-Profit Analysis, a tool that helps determine how changes in costs and volume affect a company's operating income and net income.

Disposable Income

The amount of money that households have available for spending and saving after income taxes have been accounted for.

Sensitivity Analysis

A technique used to determine how different values of an independent variable affect a particular dependent variable under a given set of assumptions.

CVP Analyses

Cost-Volume-Profit Analyses, a financial modelling technique that analyzes how changes in costs and volume affect a company's profits.